Inflation refers to a sustained increase in price levels over time rather than a one-off increase. It is experienced by both developed and developing countries, though the magnitude may differ. The document outlines several key causes of inflation including demand-pull, supply shocks, and profit-push factors. Those negatively impacted by inflation include fixed income earners, savers, creditors, and holders of securities. Common measurements of inflation discussed are the Consumer Price Index, Retail Price Index, Wholesale Price Index, and Stock Price Index.

1. INFLATION
The term inflation is generally used to
mean any sustained or continuing
increase in price. Inflation is not a
monopoly of the Philippines. It is
universal experience of all countries,
both developed and developing. The
difference lies only on the magnitude
of price increases countries suffer

2.  Causes of
Inflation
 Losers of Inflation
 Measurements of
Inflation

3. Cause of Inflation
1. Demand Pull
Inflation
2. Supply Shocks to
Inflation
3. Profit-Push

4. Losers in Inflation
1. Fixed income
earners
2. Savers
3. Creditors
4. Holders Security

5. Measurements of
Inflation
 There are at least four
commonly used measures of
price increase. These are the
Consumer Price Index
(CPI), the Retail Price Index
(RPI), the Wholesale Price
Index (WPI), and the Stock

6. Consumer Price
Index
 The CPI is intended to
provide a general measure of
average monthly annual
changes in retail prices of
commodities commonly
bought by consumers in
Philippines, covering all
income household.

7. Retail Price Index
 The RPI is designed to
measure monthly changes of
the prices at which retailers
dispose of their goods to
consumer and end-users. The
term “retail price” refers to the
price at which sellers orders for
spot or earliest delivery usually

8. Wholesale Price
Index
 The WPI is the price of a
representative basket of wholesale
goods. Some countries use the
changes in this index to measure
inflation in their economies. The
purpose of the WPI is to monitor
price movements that reflect supply
and demand in industry,
manufacturing and construction.
This helps in analyzing both

9. Stock Price Index


10. Deflation
 In economics, deflation is a
decrease in the general price
level of goods and services.
Deflation occurs when
the inflation rate falls below
0% (a negative inflation rate)